I have been thinking for a while on how to differentiate my two accounts. My ultimate decision was to focus my Taxable account on Total Shareholder Return and my Roth on Dividend Growth. Below is how I built my 7th KPI and what it means.

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I have always wanted my Roth IRA to be dividend focused for retirement income. To this point, it has been mostly based on yield, valuation and relative safety score (Dividend/FCF). I wanted to make sure that my dividends aren't just coming in now, but that I am building a sustainable and growing dividend portfolio to increase income as I get closer to retirement.

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Incorporating Dividend Growth into my portfolio was pretty straightforward. I sourced 1 and 3 year dividend growth rates from Koyfin. This gives me a little bit of a historical perspective on the growth. As far as calculating the Rank score, I modeled similar to my Share Price rank in my Watchlist scorecard. I calculated the median DGR for the portfolio at both 1 and 3 years. I then used if/and statements. If a holding's 1 and 3 year DGR are both greater than median, 1. If/or only 1 of the two is greater than median, 0.5. If both 1 and 3 year are less than median, 0.

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In an effort not to discredit ETFs that have variable dividends and aren't tracked as deliberately as individual companies, I gave ETFs that pay a dividend but do not have DGR data a 0.5.

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I will continue to use both my old 6 KPI metric as long as the new 7 KPI metric for comparison until I feel confident in full transitioning to the 7 KPI metric.

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At the outset, there are a few holdings that have benefited from the new KPI.

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Winners:

$HSY - Yield score of 0, DGR of 1.

$CSX - Yield score of 0, DGR of 1.

$OZK - Yield score of 0.5, DGR of 1.

$RICK - Yield score of 0, DGR of 1.

$AAPL - Yield score of 0, DGR of 1.

$LOW - Yield score of 0, DGR of 1.

$HD - Yield score of 0, DGR of 1.

$SBUX - Yield score of 0, DGR of 1.

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This was an easy change and a logical next step in the progression of the portfolio. Glad to have gotten this incorporated.